Luno Review 2024: Is This Crypto Broker Legit?

Luno is a UK-based crypto trading platform founded in 2013 as BitX by Marcus Swanepoel. It was later rebranded as Luno in 2016.

The platform uses complex multisig wallets with multiple security checks and encryption levels.

With the recent collapse of many large crypto trading platforms, I’ve been very skeptical about where I invest my money. However, after reading a few Luno reviews on Trustpilot, I was tempted to try it.

So, I dug deep into the history of Luno and how it works. When I was satisfied that it wasn’t a scam, I created an account and used it to trade crypto for a month.

While Luno isn’t the most popular crypto exchange, its user base is growing, especially in Europe, Asia, and Africa. At the time of writing, the platform has a trading volume of 50,557,349 and over 10,000,000 users worldwide.

If you’re looking for a trustworthy crypto exchange, read this unbiased review of Luno. I’ll break down my experience with the platform: what I liked, what frustrated me, and whether it’s worth your time and money.

Pros and Cons of Luno

Pros

• Available in many countries worldwide
• Available on Web, Android, and iOS
• Easy deposit and withdrawal process in countries like Malaysia and Nigeria where competitors have no direct link with banks
• User-friendly interface
• Secure multi-signature wallets that are almost impossible to hack
• Lots of important documentation in the help center

Cons

• High transaction fees from banks to Luno wallet in some regions
• It has few cryptocurrencies, discouraging traders who want to invest in new or smaller coins
• Higher than average trading fees
• Interest-bearing savings were removed from the platform
• You have to enter the specific number of coins you want to sell, which will often have many decimal places
• Charges an inactivity fee for users storing local currency for more than three months

Evaluating High Impact Factors

Trade with Luno If:

• You’re a new trader with little experience trading crypto
• You live in a country with few or no crypto trading platforms like Uganda, Malaysia, and Indonesia
• You want a smooth deposit experience regardless of your region’s options
• You want an intuitive crypto trading platform
• You want to trade on an established crypto platform with over a decade in the market
• You value security and privacy

Don’t Trade with Luno If:

• You want a wide variety of coins to choose from
• You value customer care highly
• You want below-market-average trading fees
• You prefer platforms with advanced charting tools and technical analysis features
• You’re an experienced high-frequency trader who needs a platform with many trading pairs
• You’re in Nigeria (there seems to be a recent problem with the Nigerian version of Luno locking users out of their accounts)

Verified Office Address

Luno has offices in Jakarta, Johannesburg, Lagos, London, Cape Town, and Sydney.

According to Craft, their headquarters are located at: Greater London, 1 Fore St, United Kingdom.

However, it’s a fully digital service. Therefore, visiting any of those offices won’t get you any in-person support.

Expert Opinions on Luno Review

Luno has been around for over a decade and is a reputable crypto exchange. However, recent reviews have been mixed, dropping its Trustpilot rating to 3.7.

I suspect the drop in ratings is related to many Nigerian customers complaining about the app’s connectivity and responsiveness in the last month.

At the time of writing, Luno support says it’s working on the issue but attributes it to new crypto regulations in Nigeria. We’ll have to wait and see how it plays out.

That aside, many trading experts have used and reviewed Luno, and I’d like to highlight some of their experiences.

Grey Jabesi from Crypto Hustle made a video 10 months ago citing his concerns over the state of Luno. He explained that he was receiving complaints from his trading students about the platform.

Specifically, some of them were having problems withdrawing funds and were forced to submit multiple verification documents. This, coupled with that Luno had just closed its Singapore offices, made him suspicious that something bad was happening with the company.

He advised traders to be cautious:

“Based on previous experiences, I think it’s safer to stay away now. If you have funds on there, I think removing the money for now is better before any surprises occur.”

On the other hand, Justin J, an IT CEO who has used Luno for over two years, calls it the best app for purchasing Bitcoin and other popular coins. He likes how it’s easy to add cards for payment and how the app notifies him whenever prices go up or down.

Finally, Social Nerd on X relived his journey as a beginner crypto trader. He praised Luno’s ease of use for beginners. However, as he progressed, he realized that many interesting coins were not on the platform.

Expert Review of Luno

My experience with Luno lasted for about a month, and I have some opinions about it.

Interface

First, I was impressed that Luno supports Google Pay and other mobile transfer services. The signup process was easy, and I didn’t need to provide additional documents to deposit money.

I was also pleased with the simple, clean UI on both the Web and Android versions of Luno. Navigation is easy, and everything is where you’d expect it to be.

That’s what makes Luno so appealing for beginners. Anyone can sign up, deposit fiat currency, and start buying and selling crypto with ease.

However, it’s annoying that there’s no dedicated button to sell everything in your wallet like you’d find on Binance. Instead, you have to enter the specific number of coins you’d like to sell, which means tediously entering a long decimal number.

Security

Luno only supports 19 cryptocurrencies and a handful of trading pairs. It does that to avoid listing scam crypto projects, which is commendable. But in doing so, it locks out people who want to invest in emerging cryptocurrencies.

That’s only one part of Luno’s stringent approach to security. The platform uses multi-signature wallets to store most assets in “deep freeze.” These hot wallets require a key from both Bitgo and Luno to release the assets.

Any hacker wanting to access my funds would need to bypass Luno and Bitgo’s multi-layered security encryptions simultaneously to access them.

The platform adheres to KYC (Know your Customer) and AML (Anti Money Laundering) processes. In practice, that means you need to upload documentation such as bank statements and proof of address before transacting on the platform.

Luno also has 2-factor authentication. Although I signed up with my email, I had to add my phone number, which I must use to confirm transactions.

Overall Impressions

My experience with the platform was good, except for a few problems with connectivity and withdrawals taking longer than usual. While this may not be a clear sign to stay away, it does seem like something unusual is happening at Luno.

Signing Up with Luno

One of Luno’s strongest features is its ease of use. This includes the signup process, which is fast and straightforward. I used the web version, which has a big, bolded “SIGN UP” button on the homepage.

While you can sign up with your email and address, you also have the option of using an existing Google, Apple, or Facebook account. These methods increase your account’s security and make it more convenient to sign in because you don’t have to remember a new password.

Next, I had to enter my phone number and give Luno access to my location settings. This allows the app to decide which features to offer and which regulations to follow based on your region.

Luno Dashboard

Once you’ve signed up, you’ll be able to access Luno’s dashboard.

While it resembles most crypto trading dashboards with charts and loads of information, it’s still aesthetically pleasing and navigable enough for beginners to find their way around.

Deposits and Withdrawals on Luno

Now, let’s talk about how you deposit cash into your Luno wallet. How easy this is will depend on your country of residence.

Deposits

Before I could deposit funds into my account, I had to go through the KYC and AML process.

That meant submitting a photo of my government ID along with a recent selfie (no older than 24 hours). I specified my residential address, occupation, and source of income, then waited for approval. Once my profile was verified, I was good to go.

Here’s a breakdown of how I deposited GBP into my Luno wallet in the United Kingdom:

1. I signed into the Luno app
2. I selected wallets from the home menu
3. I chose GBP under local currency (Luno will detect your currency based on your location)
4. I selected deposit
5. I chose my online bank and followed the security prompts
6. The cash was transferred to my Luno GBP account

From the reviews I read, the deposit process is just as easy in other supported countries, with some allowing you to buy crypto directly without transferring your funds to a fiat account first.

Withdrawals

Once you’ve sold your crypto, you can withdraw money in your local currency. Here’s how I did it:

1. I opened my wallet from the menu
2. I selected my GBP wallet and clicked on withdraw
3. I selected my online banking account
4. I entered the withdrawal amount and selected next
5. I followed the security prompts and received confirmation that my bank was processing the withdrawal

Luno only charges withdrawal fees if your bank charges them.

From what I saw online, the withdrawal processing time also depends on your region. For instance, withdrawals are processed within one business day in the UK, while they take several in Nigeria.

You can check your region’s withdrawal schedule and wait times in Luno’s help center.

Trading Conditions on Luno

As a seasoned trader, I was particularly interested in seeing what kind of trading experience Luno offers.

My first concern was the $2 monthly inactivity fee you pay if you hold funds in your fiat account for over three months.

However, Luno charges spot-taker fees based on a 30-day trading volume, which can be a pro for high-volume traders. Although, many reviews mention fees being less competitive than some exchanges.

The platform also aims to narrow spreads, which is always a plus. It’s important to note, however, that spreads can still be affected by factors like volatility and liquidity.

Luno has fixed trading fees and limits that vary between different regions. For instance, it charges 3.5% for trading crypto with your debit card in Australia, with a $3,000 limit per transaction and $8,000 per month.

You can consult Luno’s fees and limits page to find the ones that apply to your region.

How to Start Trading with Luno

After verifying your account, it’s time to start trading.

Luno is designed to make crypto trading easy for beginners. Once you’ve deposited funds, these are the steps you can take to get started:

1. Go to the wallets folder and select a wallet for the crypto you want to trade
2. Click Buy near the top of the screen within your chosen crypto wallet
3. Decide if you want a One-Off or Repeat Buy (automatic recurring purchases)
4. Choose the currency you want to use to buy the crypto
5. Enter the amount of crypto you want to buy
6. Confirm the purchase

Next, if you’d like to sell your crypto:

1. Return to the wallets folder and select the wallet with the crypto you want to trade.
2. Select the sell option.
3. Choose the currency you want to receive for the crypto (your local currency or another cryptocurrency offered by Luno)
4. Select the amount of crypto you want to sell
5. Luno will display the transaction details, including fees and how much of your selected currency you’ll get
6. Confirm the sale (you might receive security prompts if you’re using the mobile app)

Useful Tools for Traders on Luno

Luno doesn’t offer as many trading tools as you’ll find on larger trading platforms like Binance. One of the few trading tools it does offer is the option to buy a digital asset on a recurring schedule, whether that be daily, weekly, or monthly.

If you’re in South Africa or Malaysia, you can also benefit from crypto staking, which allows you to earn rewards for holding certain cryptos.

What matters, though, is that it has a few functionalities that can really help new and intermediary traders:

• Order Types: Basic order types, such as market orders (buy or sell at the current market price) and limit orders (buy or sell at a specified price)
• Live Charts: Live charts for the listed cryptocurrencies, allowing you to monitor their real-time movements and predict potential trends
• Margin Trading: Eligible users can borrow funds and amplify their potential returns
• Order Book: Shows the buy and sell orders currently placed on the exchange for a particular cryptocurrency, which can help you understand market sentiment and order depth

Investing Opportunities with Luno

Unfortunately, Luno doesn’t provide for copy trading. So, the best way to know which cryptos are popular on the platform is by looking at the trading volume (a higher trading volume indicates more user interest).

Luno Affiliate Program

Luno has an affiliate program that allows you to earn BTC when you refer your friends or followers. Whenever someone signs up using your code and deposits the specified amount of crypto, you’ll get BTC rewards in your Bitcoin wallet 30 days later.

The amount required to get rewards varies by region. Unfortunately, the affiliate program isn’t available to Luno users in the United Kingdom, so I couldn’t test it out myself.